February 2016 ///

Special Focus

Looking at the spending plans of roughly 300 E&P companies worldwide, and factoring in recent oil price declines, North American spending may fall 40-50% in 2016. Capital expenditures, internationally, are set to post a second, consecutive 15% decline.

Eyeing his legacy, lame duck President Barack Obama will throw a barrage of executive orders and rulemaking at the U.S. oil and gas industry. The Republican majority in Congress will have to figure out ways to stop Obama’s agenda, as their party tries to win back the White House.

The total number of active, producing oil wells in the U.S. dropped slightly during 2015, a trend that looks set to sharpen this year, as the oil price decline begins to exact its toll on the industry.

A protracted pricing slump has led to massive budget cuts, thousands of layoffs and the most dismal market conditions that the Canadian industry has faced in more than 20 years. No positive news is on the horizon.

While many aspects of the oil and gas industry—including exploration and advances in technology—slowed to a crawl after WWII, one area of the industry managed to make monumental strides, despite a suppressed commercial environment.